RC Structures, a speciality concrete company in Syosset, N.Y., is basing its captive insurance operations in Connecticut. That makes its new captive, RCX Insurance Co., the 10th licensed captive insurer in Connecticut.
A captive insurer is an insurance company organized and owned by a parent firm to manage the owner’s risks and control insurance costs. Once an alternative to the commercial insurance market, captives have evolved into financial vehicles used for many different enterprises, such as manufacturing and health care.
Department of Insurance commissioner Katharine L. Wade said RC Structures could have chosen any one of 40 states to establish their captive business, adding that the insurance department’s regulatory expertise helped drive the decision.
The department’s captive division was formed as a result of 2011 legislation that strengthened the state’s outdated captive insurance law. In less than three years, the department’s program was named No. 2 in the nation Captive Review, a leading industry magazine.
